Design-Build-Operate-Finance
Loading Protfolio...
 The Design-Build-Operate-Finance project approach is our best risk management alternative. This approach is a “Fee for Service” method whereby PERC Water and our financial partner will finance the design, construction and startup of the facilities without any capital cost commitment required by the public agency. When facility operations begin, PERC Water and our financial partner will be paid a service fee by the public agency for the treatment and recycling of wastewater. This service fee includes capital repayments, operations and maintenance, capital replacements and power guarantees.

This approach enables projects to begin immediately without delays while waiting for grants, State Revolving Funds or the sale of Municipal Bonds. At the end of the Service Agreement term, ownership of the facilities is transferred to the public agency.

Case in point – PERC Water and our financial partner were awarded the Design-Build-Operate-Finance project for the City of Santa Paula located in Ventura County, California. This project is the first Greenfield water recycling facility under a 30-year term that has been awarded under the California Government Code Section 5956. Click here for more information about the Santa Paula Water Recycling Facility.

The following table provides an overview of risk allocation contrasts between a traditional Design-Bid-Build delivery method verses the Design-Build, Design-Build-Operate, and Design-Build-Operate-Finance delivery methods:

Risk Allocation

  Traditional Design-Bid-Build PERC Water Design-Build Approach (DB) PERC Water Design-Build-Operate Approach (DBO) PERC Water Design-Build-Operate-Finance Approach (DBOF)

Design & Build

 Design/Build Cost Client PERC Water PERC Water PERC Water
Schedule Completion Client PERC Water PERC Water PERC Water
Construction Warranties Client PERC Water (Minimum Statutory Period) PERC Water
PERC Water
 

Asset
Management

 Water Quality Performance Client Client PERC Water PERC Water
Capital Replacement Client Client PERC Water PERC Water
Power Client Client PERC Water PERC Water
Biosolids Client Client PERC Water PERC Water
Life Cycle Costs Client Client PERC Water PERC Water
Operation & Maintenance Client Client PERC Water PERC Water
 

Financing

 Long Term Financing Client Client Client PERC Water/
Financing Partner
Interest Rate Client Client Client PERC Water/
Financing Partner

Asset Management/O&M
Design-Build
Design-Build-Operate

Copyright © 2009 PERC Water Corporation. All rights reserved.
Design and Development by Idea Hall